Singapore bans crypto in casinos over money laundering concerns

Lea Hogg September 12, 2024

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Singapore bans crypto in casinos over money laundering concerns

Singapore is moving towards cashless gaming in its two leading casinos, Marina Bay Sands and Resorts World Sentosa. The new Casino Control Act amendments in Singapore will pave the way for cashless payments while keeping cryptocurrencies out of the gaming industry. This was announced by Minister of State for Home Affairs and Social and Family Development, Sun Xueling (pictured above). The changes reflect the government’s continuous effort to modernise the industry while maintaining strict safeguards against financial risks, particularly money laundering.

Despite embracing cashless transactions, the city-state remains firm on one point: cryptocurrencies will not be permitted for casino gambling. According to Sun, cryptocurrency use poses significant risks, especially when it comes to money laundering and other illicit financial activities. This stance is in line with Singapore’s broader regulatory approach towards digital assets, which tends to err on the side of caution. The Gambling Regulatory Authority (GRA) has reaffirmed its decision to exclude cryptocurrency from casino operations, underscoring concerns over the anonymity and lack of centralized oversight that digital currencies often offer.

Singapore paves way for cashless payments

Cashless gaming is not entirely new to Singapore’s casino landscape, but the latest amendments further solidify the government’s commitment to preventing financial exploitation. In a bid to thwart terrorist financing and criminal activity, the authorities have also lowered the threshold for cash deposit checks. By tightening these regulations, Singapore aims to maintain its reputation as a secure and well-regulated hub for both tourism and business.

Additionally, the amendments have shifted some powers from the Gambling Regulatory Authority to the Minister for Home Affairs, K Shanmugam. Specifically, the minister now has the authority to approve the main shareholders of casino operators. This change is intended to align Singapore’s integrated resorts more closely with the government’s broader objectives, particularly in terms of safety, financial stability, and preventing any activities that could damage the country’s global standing.

The move to cashless gaming in Singapore mirrors a global trend, with many jurisdictions transitioning towards digital payments in an effort to streamline operations, improve customer experience, and enhance security. However, the firm rejection of cryptocurrencies stands out, particularly as other nations and industries explore their potential for mainstream financial transactions.

Singapore’s selective approach shows that while the country is open to technological advancements, it is unwilling to compromise on the core principles of financial transparency and security. In a world increasingly enamoured with digital assets, Singapore is signalling that not all innovation aligns with its long-term vision for a secure and tightly regulated financial ecosystem.

As casinos worldwide grapple with the evolving landscape of digital payments, Singapore’s cautious but progressive approach will be one to watch. It highlights a careful balance between embracing technological convenience and ensuring that the gambling industry remains free from exploitation by bad actors.

This article is based on news by Bloomberg.